Schuette: Bay City woman charged with Ponzi scheme

By the Midland Daily News

Published 4:45 am, Tuesday, September 24, 2013

Attorney General Bill Schuette has announced felony charges against a Bay City woman in connection with what he called a multi-county Ponzi scheme. Shawn Dicken, 39, of Bay City, is accused of defrauding senior citizens out of millions of dollars.

Dicken’s next court date is Sept. 25. Her lawyer Jason P. Gower said his client is innocent and is a whistleblower.

Dicken was employed as a salesperson for The Diversified Group Advisory Firm LLC, an investment company. During her tenure with Diversified, Dicken is charged with making material misrepresentations of the investments she marketed to investors, including that the investments offered by Diversified were without risk featuring a guaranteed rate of return of between 9.5 percent and 10.44 percent, Schuette said. Charges were filed on behalf of nine Michigan residents, many of whom risked their life savings.

The Attorney General investigation alleges that Dicken was funneling investors’ money into a Ponzi scheme operated by a Saginaw man, Joel Wilson. Wilson also faces felony criminal charges. Investors lost more than $2 million and the investigation alleges Dicken took an 9 percent commission, pocketing about $160,000.

In January 2013, Schuette filed nine felony charges against Wilson, who remains a fugitive with warrants outstanding for his arrest.

Dicken was charged in the 74th District Court in Midland County with:

• One count of criminal enterprises-conducting, a felony punishable by up to 20 years in prison and/or a $100,000 fine.

• One count of embezzlement from a vulnerable adult-$50,000 or more but less than $100,000, a felony punishable by up to 15 years in prison and/or a $15,000 fine.

• One count of securities-fraudulent sales, a felony punishable by up to 10 years in prison or a $20,000 fine.

• Seven counts of false pretenses-$1,000 or more but less than $20,000, a felony punishable by up to five years in prison and/or a $10,000 fine, or three times the value of the money or property involved, whichever is greater.

Dicken was arraigned before Judge John Hart, who ordered a $1,000,000 cash or surety bond and ordered Dicken to surrender her passport and not to engage as an investment adviser.

Citizens who believe they may have been victims in this case are asked to file complaints with the Attorney General’s Office at www.michigan.gov/ag by clicking “File a Complaint.”

Schuette said Michigan citizens need to exercise caution before investing their money with those who promise exorbitant returns.

“Do your homework before handing over your hard-earned money,” said Schuette. “Take your time, ask questions and be sure to confirm your broker is in good standing with the state before signing on the dotted line.”

Schuette offered the following tips to avoid falling victim to a Ponzi scheme or investment fraud:

• Check out your broker or adviser. Confirm that your broker and financial adviser is registered and in good standing. Contact the Bureau of Commercial Services with the Department of Licensing and Regulatory Affairs, at (517) 241-6345, to check out your broker or adviser.

• Beware of strangers touting great deals. Trusting strangers is a mistake anyone can make when it comes to their personal finances. Almost anyone can sound nice or honest on the telephone. Say “no” to any investment professional who presses you to make an immediate decision, giving you no opportunity to check out the salesperson, firm and the investment opportunity itself. Beware of anyone who suggests investing money into something you don’t understand or who urges that you leave everything in his or her hands.

• Take your time — don’t be rushed into investment decisions. Salespersons who use high-pressure tactics to force an investor into an immediate decision might be pitching a scam.

• Keep tabs on your investments. Be wary when a financial planner says “leave everything to me,” or “the plan is too complicated to tell you.” Everything should be clear and explainable to you. Monitor the activity on your account. Insist on receiving regular statements.

• Ask questions. Never be embarrassed or apologetic about asking questions for trading activity that looks excessive or unauthorized. It’s your money, not your broker’s.

• Keep diligent records. Keep all of your records relating to your investments, including notes of conversations you have with brokers, salespeople and financial advisers.